Novatel Differs Greatly from Sierra (NVTL, SWIR)

Posted in pre-market 
October 30th, 2009

Novatel Wireless, Inc. (NASDAQ: NVTL) failed to follow the gains of Sierra Wireless (NASDAQ: SWIR).  The wireless access card maker closed at $12.19 and shares are getting whcked.  The company did beat earnings, but issues are there on guidance.  Earnings were $0.20 EPS vs $0.10 EPS estimates; Revenues were up 12.1% to $94.3 million vs. $92.6 million expected.  For Q4 the company sees  $0.04 to $0.12 EPS and revenues of $85 to $95 million versus estimates of $0.10 EPS and $95.69 mln consensus.  Novatel was very active last night and shares are down even worse this morning. At 8:29 AM EST we have shares down a sharp 20% at $9.70 on about 42,000 shares.  The 52-week range is $2.81 to $12.30.

JON C. OGG

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